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percent) behind Japan (Maycock 2002). An estimated 70 percent of US production is exported to Europe and to developing countries. Programs such as the Million Solar Roofs initiative promote partnerships, but do not provide funding to implement them. A few states such as California and Maryland provide funding to pay some of the higher costs of PV technology. The US leads the world in installed solar thermal electric technology, with more than 400 MW installed. Installation of solar hot water systems has fallen from their peaks in the 1980s as tax credits have expired. Passive solar heating and cooling design continues to improve, but the US construction of such buildings lags well behind that of Europe. To promote the adoption of ethanol for fuels, the federal government exempts ethanol from the 5.4 cents per gallon excise tax when added to gasoline. This amounts to an annual subsidy of more than $725 million annually, according to the Energy Information Administration. There are additional production tax credits as well (EIA 2002). The US government has provided major support for renewable energy research and development. From a peak of $700 million for solar energy, and approximately $1 billion total for all renewables in the early 1980s, funding for solar has stabilized at approximately $100 million per year for the past 20 years. Biomass support is at a comparable level and is increasing, especially for ethanol, while wind and geothermal energy R&D is supported at a level of approximately $40 million each year. A 20 percent tax credit is also available for “incremental” R&D for private companies. Some joint public-private cost sharing programs exist as well (EIA 2002). Renewable Energy Outside of North America—Are there lessons to be learned? Europe has moved aggressively to promote renewable energy in a number of countries. Wind is the fastest growing source of energy by far. According to the IPCC, it has increased worldwide at an annual rate exceeding 25 percent since 1995. By the end of 2001, Germany led the world with installed capacity of 8,000 MW, or one-third of the global total. The US is second with 4,150 MW, Spain is third with 3,300 MW, and Denmark is fourth with more than 2,300 MW. Denmark now produces more than 15 percent of its electricity from wind power, and there are states within Germany that produce more than 20 percent. Germany’s investment in wind only began in 1990, and that country is on track to meet its target of 22,000 MW by 2010. These three nations have established goals for renewable energy and have set long-term premium prices for renewably generated electricity. The new Danish government, however, has just announced that it is removing many of the supports that have built the program to date. Denmark now manufactures more than 60 percent of all wind turbines sold in the world, followed by manufacturers in Germany and Spain (Brown 2002; Janet Sawin 2001; EIA 2002). Germany also leads the way with photovoltaic purchases by building and home owners with a 100,000-solar roof program. The government provides interest-free loans and a guaranteed price of 50 cents per kWh of electricity sold back to the grid over a ten-year 8PDF Image | Assessing Barriers and Opportunities for Renewable Energy in North America
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